(News Bulletin 247) – Orpea provided some details on Monday concerning the two expert reports concerning its valuation published on Friday evening, stressing that the information published in the press did not allow a fair idea to be obtained of the current value of the shares of the society.
With regard to the group’s going concern approach, the enterprise value – that is to say the value of the activities estimated by the Ledouble firm at between six billion and seven billion euros – should be in view of the 9.7 billion euros in financial debt of the group, argues the operator of retirement homes.
As for the approach in liquidation situation – which aims to address a scenario in which the accelerated safeguard plan would not be adopted, resulting in the liquidation of the company by sale of the assets or by sale to a buyer – it values Orpea between 2, 6 billion euros and 3.7 billion euros, an amount again to be related to the heavy indebtedness of the group, he adds.
“In each of these scenarios, as a result, the present economic value of equity is negative,” he said in a statement.
A state of affairs which explains, according to him, the treatment reserved for shareholders in the accelerated safeguard plan which will see existing shareholders be massively diluted by the entry into the capital of unsecured creditors as well as new investors.
Despite these details, Orpea shares were still up sharply (+25%) on the Paris Stock Exchange on Monday, marking by far the strongest increase in the SBF 120 index.
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